This study aims to examine the effect of carbon emissions disclosure on firm value in Indonesia using statistical analysis methods. This research uses panel data which consists of a combination of time series and cross section. A total of 1,830 data from 366 Indonesian companies were collected from annual reports and sustainability reports for an observation period from 2018 to 2022 as a sample of the research. Firm value is measured using Tobin’s Q. The results showed that the disclosure of carbon emissions had an effect on firm value. It was also figured out that a control variable, leverage, affected firm value. These results indicate that information about carbon emissions promotes firm value. The disclosure of carbon emissions by the company will affect investors' decisions. This is consistent with the stakeholder theory, according to which investors have the right to obtain information about the company’s activities from annual reports and sustainability reports. Companies are encouraged to foster the initiative to disclose carbon emissions as an effort to reduce the threats of global warming and strengthen stakeholders’ trust in making investment decisions.
carbon emissions, disclosure, firm value, stakeholder, Indonesia
Desy Maharani. Faculty of Economics and Business, Universitas Swadaya Gunung Jati
Inggrite Puspita. Faculty of Economics and Business, Universitas Swadaya Gunung Jati
Kholidah Suhaimah. Faculty of Economics and Business, Universitas Swadaya Gunung Jati
Kamalah Saadah. Corresponding author. Faculty of Economics and Business, Universitas Swadaya Gunung Jati, Email: kamalah.saadah@ugj.ac.id
Adams, C.A., & McNicholas, P. (2007). Making a difference: Sustainability reporting, accountability and organisational change. Accounting, Auditing and Accountability Journal, 20(3), 382–402. https://doi.org/10.1108/09513570710748553
Agustia, D., Sawarjuwono, T., & Dianawati, W. (2019). The mediating effect of environmental management accounting on green innovation – Firm value relationship. International Journal of Energy Economics and Policy, 9(2), 299–306. https://doi.org/10.32479/ijeep.7438
Akadiati, V. A. P., Purwati, A. S. M., & Sinaga, I. (2023). Penerapan standar pelaporan keberlanjutan GRI dan profitabilitas terhadap Nilai Perusahaan. Ekonomis: Journal of Economics and Business, 7(2), 1008. https://doi.org/10.33087/ekonomis.v7i2.1232
Al-Tuwaijri, S. A., Christensen, T. E., Hughes, K. E., Souza, J. D’, Dubin, R., Fogarty, T., Henderson, C., Oswald, D., Parker, L., Reynolds, K., Stice, K., & Zvinakis, K. (2003). The relations among environmental disclosure, environmental performance, and economic performance: A simultaneous equations approach. SSRN. http://dx.doi.org/10.2139/ssrn.405643
Andy, C. (2023). Tren dan Arah Sustainability Report Indonesia di Masa Mendatang. PwC Indonesia. https://pwc.to/3sMdciV
Anggraeni, D. Y. (2015). Pengungkapan emisi gas rumah kaca, kinerja lingkungan, dan nilai perusahaan. Jurnal Akuntansi Dan Keuangan Indonesia, 12(2), 188–209. https://doi.org/10.21002/jaki.2015.11
Ardhi, S. (2023). Bumi Mendidih Akibat Perubahan Iklim, UGM Usung Inovasi Bangunan Kayu yang Dapat Menyerap Karbon. Https://Ugm.Ac.Id/Id/Berita/Bumi-Mendidih-Akibat-Perubahan-Iklim-Ugm-Usung-Inovasi-Bangunan-Kayu-Yang-Dapat-Menyerap-Karbon/.
Bae Choi, B., Lee, D., & Psaros, J. (2013). An analysis of Australian company carbon emission disclosures. Pacific Accounting Review, 25(1), 58–79. https://doi.org/10.1108/01140581311318968
Bahriansyah, R. I., & Lestari Ginting, Y. (2022). Pengungkapan emisi karbon terhadap nilai perusahan dengan media exposure sebagai variabel moderasi. Jurnal Riset Akuntansi & Perpajakan (JRAP), 9(02), 249–260. https://doi.org/10.35838/jrap.2022.009.02.21
Benlemlih, M., & Girerd-Potin, I. (2017). Corporate social responsibility and firm financial risk reduction: On the moderating role of the legal environment. Journal of Business Finance & Accounting, 44(7-8), 1137-1166. https://doi.org/10.1111/jbfa.12251
Berthelot, S., Robert, A.-M., Berthelot, S., & Robert, A. (2011). Climate change disclosures: An examination of Canadian oil and gas firms. Issues in Social and Environmental Accounting, 5(2). http://dx.doi.org/10.22164/isea.v5i2.61
Bisset, V. (2023). The U.N. warns ‘an era of global boiling’ has started. What does that mean? Washington Post. https://www.washingtonpost.com/climate-environment/2023/07/29/un-what-is-global-boiling/
Botosan, C. A., Eccles, D., & Plumlee, M. A. (2000). Disclosure Level and Expected Cost of Equity Capital: An Examination of Analysts’ Rankings of Corporate Disclosure. SSRN. http://dx.doi.org/10.2139/ssrn.208148
Broadstock, D. C., Collins, A., Hunt, L. C., & Vergos, K. (2014). Economics centre voluntary disclosure, greenhouse gas emissions and business performance: Assessing the First Decade of Reporting. www.seec.surrey.ac.uk/Research/SEEDS.htm
Chen Kelvin, F.E.D.S.N. (2017). Pengungkapan emisi karbon sebagai mekanisme peningkatan kinerja untuk menciptakan nilai perusahaan. Dinamika Akuntansi, Keuangan dan Perbankan, 6(1), 1-18.
Christiawan, Y.J. & Tarigan, J. (2008). Kepemilikan manajerial: kebijakan hutang, kinerja dan nilai perusahaan. Jurnal Akuntansi Dan Keuangan, 9(1), 1-8. https://doi.org/10.9744/jak.9.1.pp. 1-8
Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2011). Does it really pay to be green? Determinants and consequences of proactive environmental strategies. Journal of Accounting and Public Policy, 30(2), 122–144. https://doi.org/10.1016/j.jaccpubpol.2010.09.013
Eko, M., Tjahjono, S., Sultan, U., Tirtayasa, A., Pondok, K., Blok, B., & Tengah, K. (2013). Pengaruh kinerja lingkungan terhadap nilai perusahaan dan kinerja keuangan. Jurnal Ekonomi, 4(1), 38-46.
Empiris, S., Peringkat, P., Tahun, B., Dozan Alfayerds, W., & Setiawan, M. A. (2021). Pengaruh pengungkapan emisi karbon dan annual report readability terhadap nilai perusahaan. Jurnal Eksplorasi Akuntansi, 3(2), 349-363.
Epstein, M. J., & Freedman, M. (1994). Social Disclosure and the Individual Investor. Accounting, Auditing & Accountability Journal, 7(4), 94–109. https://doi.org/10.1108/09513579410069867
Freedman, M. & Jaggi, B. (2005). Global warming, commitment to the Kyoto protocol, and accounting disclosures by the largest global public firms from polluting industries. International Journal of Accounting, 40(3), 215–232. https://doi.org/10.1016/j.intacc.2005.06.004
Freeman, R. E. (1983). Stockholders and stakeholders: A new perspective on corporate governance. California Management Review, 25(3), 88-106. https://doi.org/10.2307/41165018
Gabrielle, G., & Toly, A. A. (2019). The effect of greenhouse gas emissions disclosure and environmental performance on firm value: Indonesia evidence. Jurnal Ilmiah Akuntansi Dan Bisnis, 14(1), 106-119. https://doi.org/10.24843/jiab.2019.v14.i01.p10
García-Teruel, P. J., Martínez-Solano, P., & Pedro Sánchez-Ballesta, J. (2009). Accruals quality and corporate cash holdings. Accounting and Finance, 49, 95–115. https://doi.org/10.1111/j.1467
Griffin, P. A., Lont, D. H., Sun, Y., thank Shannon Anderson, W., Bradbury, M., Cahan, S., Chaput, S., Clarkson, P., Dorata, N., Edelen, R., Hay, D., Monroe, G., & Richardson, G. (2012). The relevance to investors of greenhouse gas emission disclosures. Contemporary Accounting Research, 34(2), 1265-1297. https://doi.org/10.1111/1911-3846.12298
Guidry, R. P., & Patten, D. M. (2010). Market reactions to the first-time issuance of corporate sustainability reports: Evidence that quality matters. Sustainability Accounting, Management and Policy Journal, 1(1), 33–50. https://doi.org/10.1108/20408021011059214
Hail, L., Leuz, C., Bester, A., Chafkin, M., Defranco, G., Doidge, C., Guay, W., Harvey, C., Karolyi, A., King, M., Lins, K., Miller, D., Sarkissian, S., & Schrand, C. (2008). Cost of capital effects and changes in growth expectations around U.S. cross-listings. Journal of Financial Economics, 93(3). 428-454. https://doi.org/10.1016/j.jfineco.2008.09.006
Hanifah, U. M. I. (2017). Analisis karakteristik perushaan terhadap carbon emission disclosure dan pengaruh carbon emission disclosure terhadap nilai perusahaan. Naskah Publikasi New, 1–14.
Hardiyansah, M., Agustini, A. T., & Purnamawati, I. (2021). The effect of carbon emission disclosure on firm value: Environmental performance and industrial type. Journal of Asian Finance, Economics and Business, 8(1), 123–133. https://doi.org/10.13106/jafeb.2021.vol8.no1.123
Hasseldine, J., Salama, A. I., & Toms, J. S. (2005). Quantity versus quality: The impact of environmental disclosures on the reputations of UK Plcs. British Accounting Review, 37(2), 231–248. https://doi.org/10.1016/j.bar.2004.10.003
He, R., Zhou, M., Liu, J., & Yang, Q. (2021). Female directors and carbon information disclosure: Evidence from China. Discrete Dynamics in Nature and Society, 2021. https://doi.org/10.1155/2021/7772601
Hörisch, J., Freeman, R. E., & Schaltegger, S. (2014). Applying stakeholder theory in sustainability management: Links, similarities, dissimilarities, and a conceptual framework. Organization and Environment, 27(4), 328–346. https://doi.org/10.1177/1086026614535786
Humphrey, J. E., Lee, D. D., & Shen, Y. (2012). Does it cost to be sustainable? Journal of Corporate Finance, 18(3), 626–639. https://doi.org/10.1016/j.jcorpfin.2012.03.002
IPCC (2022a). Sustainable development, poverty eradication and reducing inequalities. In Global Warming of 1.5°C (pp. 445–538). Cambridge University Press. https://doi.org/10.1017/9781009157940.007
IPCC (2022b). Sustainable development, poverty eradication and reducing inequalities. In Global Warming of 1.5°C. Cambridge University Press. https://doi.org/10.1017/9781009157940.007
Irwhantoko, I., & Basuki, B. (2016). Carbon emission disclosure: Studi pada perusahaan manufaktur Indonesia. Jurnal Akuntansi Dan Keuangan, 18(2). https://doi.org/10.9744/jak.18.2.92-104
Iskandar, D., Si, M., & Fran, E. (2016). The effect of carbon emissions disclosure and corporate social responsibility on the firm value with environmental performance as variable control. Research Journal of Finance and Accounting, 7(9), 122-130.
Jo, H., & Na, H. (2012). Does CSR reduce firm risk? Evidence from controversial industry sectors. Journal of Business Ethics, 110(4), 441–456. https://doi.org/10.1007/s10551-012-1492-2
Kolk, A., & Pinkse, J. (2005). Business responses to climate change: Identifying emergent strategies. California Management Review, 47(3). https://doi.org/10.2307/41166304
Krishnan, G. V. (2003). Audit quality and the pricing of discretionary accruals. Auditing: A Journal of Practice & Theory, 22, 109-126. https://doi.org/10.2308/aud.2003.22.1.109
Kurnia, P., Emrinaldi Nur, D. P., & Putra, A. A. (2021). Carbon emission disclosure and firm value: A study of manufacturing firms in Indonesia and Australia. International Journal of Energy Economics and Policy, 11(2), 83–87. https://doi.org/10.32479/ijeep.10730
Lash, J., & Wellington, F. (2007). Competitive advantage on a warming planet. Harvard Business Review. https://hbr.org/2007/03/competitive-advantage-on-a-warming-planet
Laskar, N. (2018). Impact of corporate sustainability reporting on firm performance: an empirical examination in Asia. Journal of Asia Business Studies, 12(4), 571–593. https://doi.org/10.1108/JABS-11-2016-0157
Lee, S. Y., Park, Y. S., & Klassen, R. D. (2015). Market responses to firms’ voluntary climate change information disclosure and carbon communication. Corporate Social Responsibility and Environmental Management, 22(1), 1–12. https://doi.org/10.1002/csr.1321
Martin, R., & De Melo, B. (2023). GHG emissions of all world countries JRC science for policy report. 1–268. https://doi.org/10.2760/235266
Matsumura, E. M., Prakash, R., & Vera-Muñoz, S. C. (2014). Firm-value effects of carbon emissions and carbon disclosures. Accounting Review, 89(2), 695–724. https://doi.org/10.2308/accr-50629
Matsumura, E. M., Vera-mu, S. C., Baber, B., Badertscher, B., Bonacchi, M., Burks, J., Canjels, E., Chen, X., Eggert, T., Irving, J., Jorgensen, B., Kinney, B., Larocque, S., Li, O. Z., Matsumoto, D., Mittelstaedt, F., Nichols, B., Odders-white, E., Pizzini, M., Warfield, T. (2014). Firm-value effects of carbon emissions and carbon disclosures. The Accounting Review, 89(2), 695–724. https://doi.org/10.2308/accr-50629
Muhamad Nabilah. (2023, August 11). Indonesia salah satu penghasil emisi karbon sektor energi terbesar global pada 2022. Katadata.Co.Id. https://databoks.katadata.co.id/datapublish/2023/08/11/indonesia-salah-satu-penghasil-emisi-karbon-sektor-energi-terbesar-global-pada-2022
Najah, M.M.S. (2012). Carbon risk management, carbon disclosure and stock market effects: An international perspective. Theses & Dissertation. University of Southern Queensland ePrints.
Ng, S., Robert Jao, Fransiskus E. Daromes, & Monica. (2022). Public ownership and firm value: mediation role of carbon emissions disclosure. Jurnal Akuntansi, 26(3), 426–442. https://doi.org/10.24912/ja.v26i3.1049
Niresh, J. A., & Velnampy, T. (2014). Firm size and profitability: A study of listed manufacturing firms ed manufacturing firms in sri lanka. International Journal of Business and Management, 9(4). https://doi.org/10.5539/ijbm.v9n4p57
Olayinka, A., & Oluwamayowa, I. (2014). Corporate environmental disclosures and market value of quoted companies in Nigeria. The Business & Management Review, 5(3), 171-184.
Rahmanita, S. A. (2020). Pengaruh carbon emission disclosure terhadap nilai perusahaan dengan kinerja lingkungan sebagai variabel moderasi. Akuntansi: Jurnal Akuntansi Integratif, 6(1), 54–70. https://doi.org/10.29080/jai.v6i01.273
Rahmawati, A., Tsamrotussaadah, I., Salsabila, Z., & Maulana, A. (2022). Peran akuntansi karbon pada perusahaan dalam pencegahan global warming. Jurnal Riset Akuntansi Dan Keuangan, 17(2), 77. https://doi.org/10.21460/jrak.2021.172.399
Rizkika Alfaiz, D., & Aryati, T. (2019). Pengaruh tekanan stakeholder dan kinerja keuangan terhadap kualitas sustainability report dengan komite audit sebagai variabel moderasi. METHOSIKA: Jurnal Akuntansi dan Keuangan Methodist, 2(2), 112–130.
Saka, C., & Oshika, T. (2014). Disclosure effects, carbon emissions and corporate value. Sustainability Accounting, Management and Policy Journal, 5(1), 22–45. https://doi.org/10.1108/SAMPJ-09-2012-0030
Salbiah dan Hasan Mukhibad. (2018). Carbon emission disclosure and profitability – evidence from manufacture companies in Indonesia. KnE Social Sciences, 3(10), 53. https://doi.org/10.18502/kss.v3i10.3118
Sari, K. H. V., & Budiasih, I. G. A. N. (2022). Carbon emission disclosure dan nilai perusahaan. E-Jurnal Akuntansi, 32(1), 3535. https://doi.org/10.24843/eja.2022.v32.i01.p16
SDGs Indonesia. (n.d.). SDGs Metadata. Sustainable Development Goals. https://sdgs.bappenas.go.id/metadata-indikator-sdgs/
Sindy, A. (2017). Luas pengungkapan corporate social responsibility dalam sustainability report berdasarkan global reporting initiative (Gri) G4 (Studi Kasus Pada Pt Aneka Tambang Tbk Tahun 2013-2015). Sarjana thesis, Universitas Brawijaya.
Suaryana, A., Akuntansi, J., & Ekonomi, F. (n.d.). Implementasi akuntansi sosial dan lingkungan di Indonesia. Jurnal Ilmiah Akuntansi dan Bisnis, 6(1).
Sudibyo, Y. A. (2018a). Carbon emission disclosure: Does it matter. IOP Conference Series: Earth and Environmental Science, 106(1). https://doi.org/10.1088/1755-1315/106/1/012036
Sudiyatno, B., Puspitasari, E., & Semarang, U. S. (2010). Pengaruh kebijakan perusahaan terhadap nilai perusahaan dengan kinerja perusahaan sebagai variabel intervening (studi pada perusahaan manufaktur di bursa efek Indonesia). Dinamika Keuangan & Perbankan, 2(1), 1–22.
Walley, N. & Whitehead, B. (1994). It isn’t easy being green. Harvard Business Review, May/June: 46–52.
Zuhrufiyah, D., & Anggraeni, D. Y. (2019). Pengungkapan emisi karbon dan nilai perusahaan (Studi kasus pada perusahaan di kawasan asia tenggara). Jurnal Manajemen Teknologi, 18(2), 80–106. https://doi.org/10.12695/jmt.2019.18.2.1
Cite this article:
Maharani, D., Puspita, I., Suhaimah, K. & Saadah, K. (2024). Carbon emissions disclosure and firm value: A study of firms in Indonesia. International Journal of Academe and Industry Research, 5(3), 22-45. https://doi.org/10.53378/ijair.353078
License:
This work is licensed under a Creative Commons Attribution (CC BY 4.0) International License.